ANEEJ accuses NNPC, Swiss partners of shortchanging Nigeria on crude swap deal

NaijaAgroNet:

The Executive Director, Africa Network for Environment and Economic Justice (ANEEJ), Rev. David Ugolor, has revealed that the interim crude swap between the Nigerian National Petroleum Corporation (NNPC) and two Swiss partners were carried out at prices lower than the market rates, NaijaAgroNet  reports.

ANEEJ, a Non-Governmental Organisation working on oil and gas sector criticized the interim crude swap contract entered into with four companies by NNPC expected to last from October to December 2015, saying the process of engaging the companies falls short of the Provisions of the Nigeria Extractive Industries Transparency Initiative (NEITI) Act 2007.

Reports say two of the agreements are with NNPC Joint-Venture companies — one with Swiss trader Vitol called Calson and the other with commodities trader, Trafigura called Napoil. The other two are with non-incorporated Joint Ventures between oil major BP and Nigermed Limited and NNPC’s trading arm Duke Oil Company with Sahara Group, NaijaAgroNet learnt.

"We are further alarmed that  the  same Geneva companies Trafigura and Vitol  reported in the Bern Declaration Report of 2013 to have outclassed  their competitors in  opaque partnerships with the NNPC are the same companies that have been contracted by the NNPC for further oil swaps.

"We observe that the interim crude swap agreement is in sharp contrast with the agenda of President Muhammadu Buhari determination to rid the nation's Oil and Gas industry and indeed all sectors of corruption responsible for the hemorrhaging of the nation into frightening poverty," the ANEEJ helmsman said.

In the press release, NaijaAgroNet  gathered, the NNPC had stated that only 16 firms would be engaged to serve as off-takers‎ for the 2015/2016 crude oil term contract‎ from the current 43.

According to the NNPC, the decision to prune the number of off-takers was borne out of the need to instill transparency and probity in the award of the annual Crude Oil Term Contract, but ANEEJ said it "wants the NNPC to take steps to end oil swaps in the country. Pruning them to 16 is a welcome development, but we want an end to oil swaps in Nigeria because it is the hot bed for oil theft and bleeding of the economy.

"The best measures to optimize the marketing of Nigeria’s crude oil and secure new market potentials is not to embark on oil swap deals but to ensure local refining of the crude and market the refined products both locally and internationally. We are happy that our refineries are working again, but they, including the new licensees  need to work optimally to meet both domestic  and international market needs," Ugolor stated.

Cyriacus Nnaji with correspondent report/GEE

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Pix: David Ugolor,